Natural Resources

An entire province facing gas shortages for as much as a week is yet another reminder that when things are left to the markets, we have no control over how fuel and other commodities are supplied to us. And when there are shortages of commodities we depend on, we can suddenly be very vulnerable.

A new study, from economists at University College London shows the impact dealing with climate change could have on Canada and other countries.

Like other researchers, the authors of the study argue that curbing climate change means roughly two-thirds of fossil fuels need to stay in the ground. This finding is similar to the findings of other research on what needs to be done to keep the average global temperature rise from greenhouse gas emissions below two degrees Celsius.

Newfoundland and Labrador crown corporation Nalcor Energy's mapping project is a small example of how some governments are questioning the assumption that all governments can do to encourage economic development is hand out tax breaks.

This month, Norway's oil revenue fund reached the point where every Norwegian is now a millionaire in Norwegian kroner. As an article in the Tyee shows, this is very different from what has happened with Alberta's oil revenue.

A recent article from Blue Green Canada warned that the failure of the federal government to encourage a transition to a green economy will have consequences. One estimate suggested that low carbon goods and services could mean 400,000 jobs. It has also been suggested that when the increasing impact of climate change forces governments to take drastic action there will be much less demand for Canadian oil.

September trade figures confirm that Canada is increasingly dependent on oil and gas. While the trade deficit was down, it was only because of a 22.9% increase in oil and gas exports in the last year. Without that, Canada's trade deficit would have increased.

In addition to concerns about the environmental impact, questions are being raised about whether the economic impact of the Energy East plan to convert a natural gas pipeline to carry oil will be positive.

The report points out that during the 2005-2008 boom, most Albertans were worse-off. People were working longer without seeing a significant improvement in income, public services were struggling to cope and homelessness increased.

About Us

Canadians for a Modern Industrial Strategy (CMIS) brings together people from labour, business, and the community who believe our economic success and social well-being depend on adopting a proactive industrial strategy.

CMIS is a partner organization of the Canadian Labour Institute for Social and Economic Fairness (CLI). Both CMIS and CLI gratefully acknowledges the support of NUPGE Canada.